Tesla Eyes Massive Chip Manufacturing Plant as Musk Considers Intel Partnership for AI Ambitions
14 Sources
[1]
Elon Musk says Tesla needs to build 'gigantic chip fab' to meet AI and robotics needs
Tesla CEO Elon Musk attends the Saudi-U.S. Investment Forum, in Riyadh, Saudi Arabia, May 13, 2025. Tesla CEO Elon Musk says the company will likely need to build a "gigantic" semiconductor fabrication plant to keep up with its artificial intelligence and robotics ambitions. "One of the things
[2]
Elon Musk says Tesla could build a gigantic chip fab and work with Intel to meet demand
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What just happened? Fresh from being awarded his $1 trillion pay package by Tesla, Elon Musk has announced that the EV giant will probably have to build "a gigantic chip fab" to ensure its AI and
[3]
NVIDIA CEO bucks Elon Musk's plans to build chip fab, says what TSMC does is 'extremely hard'
TL;DR: NVIDIA CEO Jensen Huang praised TSMC's expertise while urging a 50% boost in 3nm chip production to meet demand for Blackwell AI GPUs. He emphasized the complexity of advanced semiconductor manufacturing, highlighting that Elon Musk's plan for a massive Tesla TeraFab faces significant
[4]
Elon Musk says Tesla may need a "gigantic" chip factory for its AI ambitions
Tesla relies on TSMC and Samsung for chips but says even their best-case production won't meet future needs. According to CNBC, Tesla CEO Elon Musk stated the company may need a "gigantic" semiconductor fabrication plant for its artificial intelligence and robotics initiatives. Musk expressed
[5]
Elon Musk Dropped the Name of a Possible Chip Partner for Tesla Last Night
After a string of recent high-profile deals for Intel, could one with Tesla be next? The question became inevitable after Tesla (TSLA) CEO Elon Musk told investors at the electric vehicle maker's shareholder meeting yesterday that the company, which has increasingly shifted its focus on AI and
[6]
Elon Musk plans Tesla mega AI chip fab, mulls potential Intel partnership
Elon Musk revealed Tesla's potential need to construct a massive chip fabrication plant to meet its AI chip demands, even considering collaboration with Intel. This move supports Tesla's autonomous driving and AI ambitions, as current supplier capacity is deemed insufficient for future production
[7]
Ming-Chi Kuo Says Elon Musk's AI Chip Strategy Is No Bluff -- Tesla's Plan To Build Its Own Fabs Marks A Major Shift Away From TSMC: Here's Why - NVIDIA (NASDAQ:NVDA), Tesla (NASDAQ:TSLA)
On Sunday, TF International Securities analyst Ming-Chi Kuo said Elon Musk's remarks confirm that Tesla Inc.'s (NASDAQ:TSLA) move to build its own semiconductor production plants isn't just an ambition -- it's a calculated step toward full control of its AI future. Musk's Chip Push Aligns With
[8]
NVIDIA CEO Jensen Huang Pushes Back on Elon Musk's 'Bold Plans' to Build a Chip Fab, Saying What TSMC Does Is "Extremely Hard"
NVIDIA's Jensen Huang has responded to Elon's statements about building a chip fab, saying that it's almost impossible to match the work that TSMC does. For those unaware, while speaking to his shareholders, billionaire Elon Musk revealed his intentions to build a gigantic chip facility to support
[9]
Nvidia CEO Jensen Huang Pushes Back On Elon Musk's Plan To Build Chip Fab, Says What TSMC Does Is 'Extremely Hard' - NVIDIA (NASDAQ:NVDA), Intel (NASDAQ:INTC)
Nvidia Corporation (NASDAQ:NVDA) CEO Jensen Huang seems to have cautioned Tesla Inc. (NASDAQ:TSLA) boss Elon Musk against underestimating the complexities of semiconductor manufacturing. Jensen Huang Comments On Musk's Chip Fab Ambition Earlier this week, Musk told Tesla shareholders that he
[10]
Elon Musk Declares "Chips on the Brain," Plans "Gigantic" Tesla AI Fab and Mulls Intel Partnership
In a move that would surprise a few in the semiconductor world, Tesla CEO Elon Musk announced plans for a "gigantic chip fab" to build Tesla's own AI chips, all while publicly mulling a new foundry partnership with Intel. Speaking at Tesla's annual shareholder meeting Thursday, Musk, fresh off
[11]
TSMC, Samsung, Intel? Why Tesla's Chip Strategy Is Trying To Cover Every Foundry - Tesla (NASDAQ:TSLA)
Elon Musk has a new problem -- and it's not demand for Tesla Inc's (NASDAQ:TSLA) cars. It's the global shortage of silicon to power his next wave of AI ambitions. "How do we make enough chips?" he asked at Tesla's annual shareholder meeting, sounding less like a car CEO and more like a
[12]
Elon Musk Hints at a Massive Intel-Tesla Foundry Deal, Saying It's Worth "Having Discussions" With Team Blue
It appears that Tesla is seeking to add more chip suppliers, and following its agreements with TSMC and Samsung, the automaker is now interested in Intel's foundry services. When it comes to external customers, Intel Foundry hasn't managed to secure much volume, and while the firm's 18A process
[13]
Intel shares rise as Elon Musk touts potential Tesla chipmaking deal By Investing.com
Investing.com-- Intel shares rose in aftermarket trading on Thursday after Tesla CEO Elon Musk said the electric vehicle maker could enter a deal with the chipmaker for artificial intelligence and robotics processors. Intel Corporation (NASDAQ:INTC) rose 2.2% to $38.06 by 18:29 ET (23:29
[14]
Gene Munster Says Elon Musk Has Talked About Moving Away From Nvidia Before, But It's 'Proven Extremely Hard To Do' As Tesla Doubles Down On AI5 Chip - Tesla (NASDAQ:TSLA)
Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk is ramping up efforts to build an in-house artificial intelligence chip, the AI5, but Gene Munster warns that moving away from Nvidia Corp. (NASDAQ:NVDA) has proven far more difficult than Musk's ambitious projections suggest. Elon Musk Says He 'Dreams About
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Tesla CEO Elon Musk announced the company may need to build a "gigantic" semiconductor fabrication plant to meet its AI and robotics chip demands. He's also considering partnerships with Intel, as current suppliers TSMC and Samsung cannot meet projected needs.
Tesla's Chip Manufacturing Ambitions
Tesla CEO Elon Musk announced at the company's annual shareholders meeting that Tesla will likely need to construct a "gigantic" semiconductor fabrication plant to support its expanding artificial intelligence and robotics initiatives
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. The proposed facility, which Musk dubbed a "Tesla terra fab," represents a significant strategic shift for the electric vehicle manufacturer as it pivots toward AI-driven technologies.
Source: Benzinga
"One of the things I'm trying to figure out is -- how do we make enough chips?" Musk stated during the meeting, highlighting the supply constraints facing Tesla's ambitious technology roadmap
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. The proposed fabrication plant would have an initial capacity of 100,000 wafer starts per month, eventually scaling to 1 million wafer starts monthly2
.Current Supply Chain Challenges
Tesla currently relies on contract manufacturers Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics to produce its custom chip designs
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. Despite these partnerships, Musk emphasized that "even when we extrapolate the best-case scenario for chip production from our suppliers, it's still not enough"4
.The semiconductor shortage has become particularly acute amid the AI boom, with tech giants competing for limited manufacturing capacity from leading chipmakers like TSMC, the world's largest and most advanced semiconductor manufacturer
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. For context, TSMC's annual wafer production capacity reached 17 million in 2024, equivalent to approximately 1.42 million wafer starts per month2
.Potential Intel Partnership
Musk also revealed that Tesla is considering a partnership with Intel to help meet its chip manufacturing needs. "Maybe we'll do something with Intel," Musk said, though he clarified that "we haven't signed any deal, but it's probably worth having discussions with Intel"
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.
Source: Wccftech
This potential collaboration could provide a significant boost to Intel's foundry business, which has struggled to attract major clients despite recent investments in advanced manufacturing capabilities
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. Intel's stock price jumped 2.2% following Musk's comments, while Tesla shares rose 4% in after-hours trading2
.Related Stories
Industry Skepticism and Challenges
Not everyone in the semiconductor industry views Tesla's manufacturing ambitions favorably. NVIDIA CEO Jensen Huang, currently visiting Taiwan to strengthen relationships with TSMC, expressed skepticism about Tesla's plans. "Building advanced chip manufacturing is extremely hard," Huang told reporters, emphasizing that "the engineering, the science and the artistry of doing what TSMC does for a living is extremely hard"
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Source: Benzinga
Huang's comments underscore the significant technical and financial challenges associated with building advanced semiconductor manufacturing facilities, which require billions of dollars in investment and years of development.
Tesla's AI-Driven Future
Musk's chip manufacturing plans align with Tesla's broader strategic shift toward AI and robotics. The company is finalizing designs for its A15 chip, which reportedly offers a 40x improvement over the current A14 processor, with small-scale production planned for 2026 and high-volume manufacturing in 2027
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.The A16 chip, scheduled for volume production in 2028, is expected to double the performance of its predecessor while consuming approximately one-third of the power used by NVIDIA's Blackwell chip at 10% lower manufacturing costs
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.Musk characterized AI and robotics as transformational for the global economy, stating, "With AI and robotics, you can actually increase the global economy by a factor of 10, or maybe 100. There's not, like, an obvious limit"
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